We Shared the Why — Here's the How...

On Friday, we shared some compelling Harvard Business Review research on customer acquisition:

Acquiring a new customer costs anywhere from five to 25 times more than keeping an existing customer, depending on the industry and source.

The probability of selling to an existing customer is 60-70%.

For new customers, the likelihood of making a sale is only 5-20%.

In a world of increasing competition, both online and in-store, how retailers treat their customers can be the difference between staying in business and not. The same is true for us, which is why, as a service to your customers, we recommend sharing this series with them.

In a recent article by Deborah Everson on the Hardware-Building Supply Dealer website, she attributes the problem to inadequate employee training and offers three things that retailers can do to train their employees (refer to Friday's sales tip to understand WHY this is so important):

Train through modeling: Assign a mentor — the fastest way to teach what excellent service looks like is to show it in action.

Build confidence through role-playing. (Where have we heard that before?) — Most new employees don't need more information; they need practice and encouragement to do what they already know. Role-playing works.

Celebrate the wins — Confidence doesn't grow from lectures or training sessions; it grows from positive reinforcement. This is especially true for Gen Z employees, who are accustomed to receiving immediate likes and feedback on digital platforms. Leaders should look for opportunities to praise employees for everything from remembering a customer's name to walking them to the item they are looking for, rather than just pointing and saying, "Aisle 108."

As I shop, great customer service begins with a greeting. A smile, a hello and for extra credit, addressing me by name and welcoming me back are all essential. Active listening to understand what the customer is trying to accomplish is also critical, as is asking thoughtful and probing questions to help them figure out solutions to their problems.

It should go without saying, but I must. "Say thank you" when a customer is in your store. There's a local convenience store chain in Wisconsin called Kwik Trip. When you check out at Kwik Trip, not only do they say, "thank you," but they also say, "see you next time." What a proactive and assumptive way to bring people back in. They aren't saying we hope you’ll come back; they know you will. And you will.

Are you interested in providing excellent customer service to the clients you serve? Sharing this information, offering to help train their employees or conducting a secret shopper survey are all ways you can help their business grow and demonstrate that you are a source of business intelligence and a resource to help them in all aspects of their business. You're not just an ad rep.

Who can you provide exceptional customer service to this week?

Think Big! Make Big Things Happen!

Jeff Schmidt is the SVP of Professional Development. You can reach him at Jeff.Schmidt@rab.com. You can all so connect with him on X and LinkedIn.